Tracy, California, September 19, 2025
News Summary
The Tracy City Council has given the green light for Costco to construct two large warehouses near Schulte and Hansen roads, pending county approval. The warehouses will span 1.2 million and over half a million square feet, generating 400 construction jobs and 250 permanent positions. With an anticipated $4 million in new sales tax revenue, this project marks a significant development for Tracy’s economy. Set to run on 100% renewable energy, the warehouses align with the city’s growth trend in distribution facilities due to its favorable location.
California – The Tracy City Council has approved Costco’s plans to build two large warehouses just outside of Tracy, California. This decision, which awaits final approval from the county, was made last week and signals a significant development for the city. The proposed location for these warehouses is near the southeast corner of Schulte and Hansen roads.
The project is set to include a 1.2 million square foot warehouse along with another structure that is over half a million square feet in size. The construction of these warehouses is anticipated to generate approximately 400 construction jobs, with Costco projecting the creation of around 250 permanent jobs once the warehouses are operational.
Financially, the project is expected to bring considerable benefits to the city, generating nearly $4 million in additional sales tax revenue for Tracy. These funds could potentially be allocated for parks and infrastructure improvements, contributing to the community’s development.
Currently, the land designated for this project is zoned for agriculture. Therefore, Costco’s plans will require county approval for annexation into the Tracy city limits. San Joaquin County Supervisor Robert Rickman has indicated that the growth of the city often involves the annexation of county land for new developments like this warehouse initiative.
The approval process for the land annexation is estimated to take approximately 3 to 4 months. If everything proceeds smoothly, the construction of the warehouses will take about two years to complete. It is also notable that Costco aims to run these new facilities on 100% renewable energy, aligning with sustainability objectives.
The development reflects a broader trend in Tracy, which has experienced significant growth in warehouse and distribution facilities. This trend is attributed to the city’s strategic location near major highways and transportation hubs, making it an attractive site for such operations. Over the years, Tracy has transformed considerably, responding to the rising demand for warehouse space driven by the growth of e-commerce and online shopping.
As the project moves forward, it is expected that it will play a critical role in both the local economy and in the continuation of Tracy’s urban development.
Key Details of the Costco Warehouse Project
| Feature | Details |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads |
| Total Warehouse Area | 1.2 million sq ft and over half a million sq ft |
| Construction Jobs Created | 400 |
| Permanet Jobs Created | 250 |
| Projected Sales Tax Revenue | $4 million |
| Approval Timeline for Annexation | 3 to 4 months |
| Construction Timeline | Around 2 years |
| Renewable Energy Goal | 100% renewable energy operation |
FAQ
What did the Tracy City Council approve?
Costco’s plans to build two large warehouses just outside the city of Tracy, California.
What is the location of the proposed warehouses?
The proposed location is near the southeast corner of Schulte and Hansen roads.
How big will the warehouses be?
The project includes a 1.2 million square foot warehouse and another over half a million square feet.
How many construction jobs will be created?
The construction of these warehouses is expected to create 400 construction jobs.
How many permanent jobs will be created after completion?
Upon completion, approximately 250 permanent jobs will be created for Costco.
What is the estimated sales tax revenue generated by the project?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy.
What is the current zoning of the land intended for development?
The land intended for development is currently zoned for agriculture and requires county approval for annexation into Tracy city limits.
How long will the approval process for annexation take?
The approval process for the land annexation could take 3 to 4 months.
How long is the construction project expected to take?
The construction project is expected to take about two years to complete without issues.
What sustainable practices does Costco plan to implement?
Costco plans to ensure that the new warehouses will operate on 100% renewable energy.
What trends are reflected in the development of the new warehouses?
The development of the new warehouses reflects a wider trend in Tracy, which has seen significant growth in warehouse and distribution facilities due to its strategic location near major highways and transportation hubs.
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Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
